The government of Antigua and Barbuda has formally given the green light to a key policy change that expands the country’s existing windfall profits tax to a much broader group of businesses, with all new revenue generated by the adjustment earmarked exclusively for the government’s popular free tertiary education initiative.
The confirmation of the final decision came during a post-Cabinet press briefing held on Thursday, where Director General of Communications Maurice Merchant addressed lingering questions from reporters about whether the tax would be expanded beyond its original narrower scope.
Merchant made clear that the policy adjustment has already secured full Cabinet approval, laying out that the expanded levy will apply to every profit-generating company operating across Antigua and Barbuda that crosses the threshold of 1 million Eastern Caribbean dollars in annual profits. When clarifying the scope of the new rule, he emphasized: “All companies within Antigua and Barbuda who make a million plus dollars, they would be required to pay that tax—on profits, that is.”
Unlike generic windfall taxes often introduced to address sudden excess profits, this expansion is explicitly designed to build a stable, long-term funding stream for the administration’s flagship free post-secondary education program. That funding will cover a range of education costs, including tuition support for local students enrolled at the University of the West Indies Five Islands Campus, one of the country’s main tertiary education institutions.
Before the tax can go into effect, the government must first pass necessary amendments to existing national legislation through the country’s Parliament. Merchant confirmed that this is the only major procedural step remaining before the policy can be implemented.
Thursday’s formal confirmation of the plan aligns with earlier public comments from Prime Minister Gaston Browne, who first signaled the administration’s intent to broaden the windfall tax as a way to lock in sustainable long-term financing for the free tertiary education program. With the Cabinet having now signed off on the final decision, the process of advancing the required legislative changes through Parliament is expected to move forward in the coming weeks.